Category: VRM (page 1 of 21)

Humanizing the Great Ad Machine

This is a comment I couldn’t publish under this post before my laptop died. (Fortunately I sent it to my wife first, so I’m posting it here, from her machine.)

OMMA’s theme is “Humanizing the Great Ad Machine”  Good one. Unfortunately, the agenda and speaker list suggest that industry players are the only ones in a position to do that. They aren’t..

The human targets of the Great Ad Machine are actually taking the lead—by breaking it.

Starting with ad blocking and tracking protection.

I see no evidence of respect for that fact, however, in the posts and tweets (at #MPOMMA) coming out of the conference so far. Maybe we can change that.

Let’s start by answering the question raised by the headline in Ad Blocking and DVRs: How Similar? I can speak as an operator of both technologies, and as a veteran marketer as well. So look at the rest of this post as the speech I’d give if I was there at OMMA…

Ad blocking and DVRs have four main things in common.

1) They are instruments of personal independence;

2) They answer demand for avoiding advertising. That demand exists because most advertising wastes time and space in people’s lives, and people value those two things more than whatever good advertising does for the “content” economy;

3) Advertising agents fail to grok this message; which is why—

4) Advertising agents and the “interactive” ad industry cry foul and blame the messengers (including the makers of ad blockers and other forms of tracking protection), rather than listening to, or respecting, what the market tells them, loudly and clearly.

Wash, rinse and repeat.

The first wash was VCRs. Those got rinsed out by digital TV. The second wash was DVRs. Those are being rinsed out right now by the Internet. The third wash is ad blocking.

The next rinse will happen after ad blocking succeeds as chemo for the cancer of ads that millions on the receiving end don’t want.

The next wash will be companies spending their marketing money on listening for better signals of demand from the marketplace, and better ways of servicing existing customers after the sale.

This can easily happen because damn near everybody is on the Net now, or headed there. Not trapped on TV or any other closed, one-way, top-down, industry-controlled distribution system.

On the Net, everybody has a platform of their own. There is no limit to what can be built on that platform, including much better instruments for expressing demand, and much better control over private personal spaces and the ways personal data are used by others. Ad blocking is just the first step in that direction.

The adtech industry (including dependent publishers) can come up with all the “solutions” they want to the ad blocking “problem.” All will fail, because ad blocking is actually a solution the market—hundreds of millions of real human beings—demands. Every one of adtech’s “solutions” is a losing game of whack-a-mole where the ones with hammers bang their own heads.

For help looking past that game, consider these:

1) The Interent as we know it is 21 years old. Commercial activity on it has only been possible since April 30, 1995. The history of marketing on the Net since then has been a series of formative moments and provisional systems, not a permanent state. In other words, marketing on the Net isn’t turtles all the way down, it’s scaffolding. Facebook, Google and the rest of the online advertising world exist by the grace of provisional models that have been working for only a few years, and can easily collapse if something better comes along. Which it will. Inevitably. Because…

2) When customers can signal demand better than adtech can manipulate it or guess at it, adtech will collapse like a bad soufflé.

3) Plain old brand advertising, which has always been aimed at populations rather than people, isn’t based on surveillance, and has great brand-building value, will carry on, free of adtech, doing what only it can do. (See the Ad Contrarian for more on that.)

In the long run (which may be short) winners will be customers and the companies that serve them  respectfully. Not more clueless and manipulative surveillance-based marketing schemes.

Winning companies will respect customers’ independence and intentions. Among those intentions will be terms that specify what can be done with shared personal data. Those terms will be supplied primarily by customers, and companies will agree to those terms because they will be friendly, work well for both sides, and easily automated.

Having standard ways for signaling demand and controlling use of personal data will give customers the same kind of scale companies have always had across many customers. On the Net, scale can work in both directions.

Companies that continue to rationalize spying on and abusing people, at high costs to everybody other than those still making hay while the sun shines, will lose. The hay-makers will also lose as soon as the light of personal tolerance for abuse goes out, which will come when ad blocking and tracking protection together approach ubiquity.

But the hay-makers can still win if they start listening to high-value signals coming from customers. It won’t be hard, and it will pay off.

The market is people, folks. Everybody with a computer or a smart mobile device is on the Net now. They are no longer captive “consumers” at the far ends of one-way plumbing systems for “content.” The Net was designed in the first place for everybody, not just for marketers who build scaffolding atop customer dislike and mistake it for solid ground.

It should also help to remember that the only business calling companies “advertisers” is advertising. No company looks in the mirror and sees an advertiser there. That’s because no company goes into business just so they can advertise. They see a car maker, a shoe store, a bank, a brewer, or a grocer. Advertising is just overhead for them. I learned this lesson the hard way as a partner for 20 years in a very successful ad agency. Even if our clients loved us, they could cut their ad budget to nothing in an instant, or on a whim.

There’s a new world of marketing waiting to happen out there in the wide-open customer-driven marketplace. But it won’t grow out of today’s Great Ad Machine. It’ll grow out of new tech built on the customers’ side, with ad blocking and tracking protection as the first examples. Maybe some of that tech is visible at OMMA. Or at least maybe there’s an open door to it. If either is there, let’s see it. Hashtag: #VRM. (For more on that, see https://en.wikipedia.org/wiki/Vendor_relationship_management.)

If not, you can still find developers here .

The Castle Doctrine

home castle

The Castle doctrine has been around a long time. Cicero (106–43 BCE) wrote, “What more sacred, what more strongly guarded by every holy feeling, than a man’s own home?” In Book 4, Chapter 16 of his Commentaries on the Laws of England, William Blackstone (1723–1780 CE) added, “And the law of England has so particular and tender a regard to the immunity of a man’s house, that it stiles it his castle, and will never suffer it to be violated with impunity: agreeing herein with the sentiments of ancient Rome…”

Since you’re reading this online, let me ask, what’s your house here? What sacred space do you strongly guard, and never suffer to be violated with impunity?

At the very least, it should be your browser.

But, unless you’re running tracking protection in the browser you’re using right now, companies you’ve never heard of (and some you have) are watching you read this, and eager to use or sell personal data about you, so you can be delivered the human behavior hack called “interest based advertising.”

Shoshana Zuboff, of Harvard Business School, has a term for this:surveillance capitalism, defined as “a wholly new subspecies of capitalism in which profits derive from the unilateral surveillance and modification of human behavior.”

Almost across the board, advertising-supported publishers have handed their business over to adtech, the surveillance-based (they call it “interactive”) wing of advertising. Adtech doesn’t see your browser as a sacred personal space, but instead as a shopping cart with ad space that you push around from site to site.

So here is a helpful fact: we don’t go anywhere when we use our browsers. Our browser homes are in our computers, laptops and mobile devices. When we “visit” a web page or site with our browsers, we actually just request its contents (using the hypertext protocol called http or https).

In no case do we consciously ask to be spied on, or abused by content we didn’t ask for or expect. That’s why we have every right to field-strip out anything we don’t want when it arrives at our browsers’ doors.

The castle doctrine is what hundreds of millions of us practice when we use tracking protection and ad blockers. It is what called the new Brave browser into the marketplace. It’s why Mozilla has been cranking up privacy protections with every new version of Firefox . It’s why Apple’s new content blocking feature treats adtech the way chemo treats cancer. It’s why respectful publishers will comply with CHEDDAR. It’s why Customer Commons is becoming the place to choose No Trespassing signs potential intruders will obey. And it’s why #NoStalking is a good deal for publishers.

The job of every entity I named in the last paragraph — and every other one in a position to improve personal privacy online — is to bring as much respect to the castle doctrine in the virtual world as we’ve had in the physical one for more than two thousand years.

It should help to remember that it’s still early. We’ve only had commercial activity on the Internet since April 1995. But we’ve also waited long enough. Let’s finish making our homes online the safe places they should have been in the first place.

 

Why #NoStalking is a good deal for publishers

"Just give me ads not based on tracking me.."

That line, scribbled on a whiteboard at VRM Day recently at the Computer History Museum, expresses the unspoken social contract we’ve always had with ad-supported print publications in the physical world. But we never needed to say it in that world, for the same reason we never needed to say “don’t follow me out of your store,” or “don’t use ink that will give me an infection.” Nobody ever would have considered doing anything that ridiculously ill-mannered.

But following us, and infecting our digital bodies (e.g. our browsers) with microbes that spy on us, is pro forma for ad-supported publishers on the Internet. That’s why Do Not Track was created in 2007, and a big reason why since then hundreds of millions of us have installed ad blockers and tracking protection of various kinds in our browsers and mobile devices.

But blocking ads also breaks that old social contract. In that sense it’s also ill-mannered, though not ridiculously so.

What if we wanted to restore that social contract, for the good of publishers that are stuck in their own ill-mannered death spiral?

The first and easiest way is by running tracking protection alone. There are many ways of doing that. There are settings you can make in some browsers, plus add-ons or extensions from Aloodo, BaycloudDisconnect, the EFF and others.

The second is requesting refined settings from browser makers. That’s  what @JuliaAnguin does in this tweet about the new Brave browser:

Julia Angwin's request to Brave

But why depend on each browser to provide us with a separate setting, with different rules? How about having our own pro forma rule we could express through all our browsers and apps?

We have the answer, and it’s called the NoStalking rule. In fact, it’s already being worked out and formalized at the Kantara Initiative and will live at Customer Commons, where it will be legible at all three of these levels:

3way

It will work because it’s a good one for both sides. Individuals issuing the offer get guilt-free use of the goods they come to the publisher for, and the publisher gets to stay in business — and improve that business by running advertising that is actually valued by its recipients.

The offer can be expressed in one line of code in a browser, and accepted by corresponding code on the publisher’s side. The browser code can be run natively (as, for example, a choice in the Brave menu above) or through an extension such as an ad or tracking blocker. In those cases the blocker would open the valve to non-tracking-based advertising.

On the publisher’s side, the agreement can be automatic. Or simply de facto, meaning the publisher only runs non-tracking based ads anyway. (As does, for example, Medium.) In that case, the publisher is compliant with CHEDDAR, which was outlined by Don Marti (of Aloodo, above) and discussed  both at VRM Day and then at  IIW, in May. Here’s an icon-like image for CHEDDAR, drawn by Craig Burton on his phone:

Sketch - 7

To explain CHEDDAR, Don wrote this on the same whiteboard where the NoStalking term above also appeared:

cheddar

For the A in CHEDDAR, if we want the NoStalking agreement to be accountable from both sides, it might help to have a consent receipt. That spec is in the works too.

What matters most is that individuals get full respect as sovereign actors operating with full agency in the marketplace. That means it isn’t good enough just for sites to behave well. Sites also need to respond to friendly signals of intent coming directly from individuals visiting those sites. That’s why the NoStalking agreement is important. It’s the first of many other possible signals as well.

It also matters that the NoStalking agreement may be the first of its kind in the online world: one where the individual is the one extending the offer and the business is the one agreeing to it, rather than the other way around.

At VRM Day and IIW, we had participants affiliated with the EFF, Mozilla, Privacy Badger, Adblock Plus, Consent Receipt, PDEC (Personal Data Ecosystem Consortium),  and the CISWG (Consent & InfoSharing Working Group), among others. Work has continued since then, and includes people from the publishing, advertising and other interested communities. There’s a lot to be encouraged about.

In case anybody wonders if advertising can work as well if it’s not based on tracking, check out Pedro Gardete: The Real Price of Cheap Talk: Do customers benefit from highly targeted online ads?  by Eilene Zimmerman (@eilenez) in Insights by Stanford Business. The gist:

Now a new paper from Stanford Graduate School of Business professor Pedro Gardete and Yakov Bart, a professor at Northeastern University, sheds light on who is likely to benefit from personalized advertising and identifies managerial best practices.

The researchers found that highly targeted and personalized ads may not translate to higher profits for companies because consumers find those ads less persuasive. In fact, in some cases the most effective strategy is for consumers to keep information private and for businesses to track less of it.

You can also mine the oeuvres of Bob Hoffman and Don Marti for lots of other material that makes clear that the best advertising is actual advertising, and not stalking-based direct marketing that only looks like advertising.

Our next step, while we work on all this,  is to put together an FAQ on why the NoStalking deal is a good one for everybody. Look for that at Customer Commons, where terms behind more good deals that customers offer will show up in the coming months.

Earth to marketing: customers don’t want to be “acquired”

targetbackThey also don’t want to be “targets” that get “managed,” “controlled,” “owned” or “locked in” as if they were cattle or slaves.

Mostly what they want are good products and services from companies that give  good reasons to trust them and buy from them. And, after they buy the goods or sign the contract, they want to be treated well when updates are required or when things go wrong.

And when things go very wrong, they want to deal with human beings who can fix the problem.

They also don’t want anything that puts a burden on them, even if it’s a “loyalty” program with discounts or rewards. There are too many of those already, and each of them a cognitive overload that’s also operational overhead for the seller.

Earn loyalty from what you do best. Your customers will take care of the rest. All have mouths, and word will spread.

Yes, marketing  matters, but not as much as what Peter Drucker said long ago: the purpose of a business is to make and keep a customer.

If you do that well, you won’t need advertising, SEM, SEO, CRM or other 3-letter acronyms to make it happen. Those are good-to-haves, but they are just gravy on the meat and potatoes of products, services and treatment of customers.

A earlier version of this post appeared (using the first person voice) in @Medium.

IoT & IoM next week at IIW

blockchain1

(This post was updated and given a new headline on 20 April 2016.)

In  The Compuserve of Things, Phil Windley issues this call to action:

On the Net today we face a choice between freedom and captivity, independence and dependence. How we build the Internet of Things has far-reaching consequences for the humans who will use—or be used by—it. Will we push forward, connecting things using forests of silos that are reminiscent the online services of the 1980’s, or will we learn the lessons of the Internet and build a true Internet of Things?

In other words, an Internet of Me (#IoM) and My Things. Meaning things we own that belong to us, under our control, and not puppeted by giant companies using them to snarf up data about our lives. Which is the  #IoT status quo today.

A great place to work on that is  IIW— the Internet Identity Workshop , which takes place next Tuesday-Thursday, April 26-28,  at the Computer History Museum in Silicon Valley. Phil and I co-organize it with Kaliya Hamlin.

To be discussed, among other things, is personal privacy, secured in distributed and crypto-secured sovereign personal spaces on your personal devices. Possibly using blockchains, or approaches like it.

So here is a list of some topics, code bases and approaches I’d love to see pushed forward at IIW:

  • OneName is “blockchain identity.”
  • Blockstack is a “decentralized DNS for blockchain applications” that “gives you fast, secure, and easy-to-use DNS, PKI, and identity management on the blockchain.” More: “When you run a Blockstack node, you join this network, which is more secure by design than traditional DNS systems and identity systems. This  is because the system’s registry and its records are secured by an underlying blockchain, which is extremely resilient against tampering and control. In the registry that makes up Blockstack, each of the names has an owner, represented by a cryptographic keypair, and is associated with instructions for how DNS resolvers and other software should resolve the name.” Here’s the academic paper explaining it.
  • The Blockstack Community is “a group of blockchain companies and nonprofits coming together to define and develop a set of software protocols and tools to serve as a common backend for blockchain-powered decentralized applications.” Pull quote: “For example, a developer could use Blockstack to develop a new web architecture which uses Blockstack to host and name websites, decentralizing web publishing and circumventing the traditional DNS and web hosting systems. Similarly, an application could be developed which uses Blockstack to host media files and provide a way to tag them with attribution information so they’re easy to find and link together, creating a decentralized alternative to popular video streaming or image sharing websites. These examples help to demonstrate the powerful potential of Blockstack to fundamentally change the way modern applications are built by removing the need for a “trusted third party” to host applications, and by giving users more control.” More here.
  • IPFS (short for InterPlanetary File System) is a “peer to peer hypermedia protocol” that “enables the creation of completely distributed applications.”
  • OpenBazaar is “an open peer to peer marketplace.” How it works: “you download and install a program on your computer that directly connects you to other people looking to buy and sell goods and services with you.” More here and here.
  • Mediachain, from Mine, has this goal: “to unbundle identity & distribution.” More here and here.
  • telehash is “a lightweight interoperable protocol with strong encryption to enable mesh networking across multiple transports and platforms,” from @Jeremie Miller and other friends who gave us jabber/xmpp.
  • Etherium is “a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.”
  • Keybase is a way to “get a public key, safely, starting just with someone’s social media username(s).”
  • ____________ (your project here — tell me by mail or in the comments and I’ll add it)

In tweet-speak, that would be @BlockstackOrg, @IPFS, @OpenBazaar, @OneName, @Telehash, @Mine_Labs #Mediachain, and @IBMIVB #ADEPT

On the big company side, dig what IBM’s Institute for Business Value  is doing with “empowering the edge.” While you’re there, download Empowering the edge: Practical insights on a decentralized Internet of Things. Also go to Device Democracy: Saving the Future of the Internet of Things — and then download the paper by the same name, which includes this graphic here:

ibm-pyramid

Put personal autonomy in that top triangle and you’ll have a fine model for VRM development as well. (It’s also nice to see Why we need first person technologies on the Net , published here in 2014, sourced in that same paper.)

Ideally, we would have people from all the projects above at IIW. For those not already familiar with it, IIW is a three-day unconference, meaning it’s all breakouts, with topics chosen by participants, entirely for the purpose of getting like-minded do-ers together to move their work forward. IIW has been doing that for many causes and projects since the first one, in 2005.

Register for IIW here: https://iiw22.eventbrite.com/.

Also register, if you can, for VRM Day: https://vrmday2016a.eventbrite.com/. That’s when we prep for the next three days at IIW. The main focus for this VRM Day is here.

Bonus link: David Siegel‘s Decentralization.

 

 

 

Two VRooMy posts

Two new posts with VRM themes just went up.

First, in Linux Journal (@LinuxJournal), How Will the Big Data Craze Play Out?

An excerpt:

I’m wondering when and how the Big Data craze will run out—or if it ever will.

My bet is that it will, for three reasons.

First, a huge percentage of Big Data work is devoted to marketing, and people in the marketplace are getting tired of being both the sources of Big Data and the targets of marketing aimed by it. They’re rebelling by blocking ads and tracking at growing rates. Given the size of this appetite, other prophylactic technologies are sure to follow. For example, Apple is adding “Content Blocking” capabilities to its mobile Safari browser. This lets developers provide ways for users to block ads and tracking on their IOS devices, and to do it at a deeper level than the current add-ons. Naturally, all of this is freaking out the surveillance-driven marketing business known as “adtech” (as a search for adtech + adblock reveals).

Second, other corporate functions must be getting tired of marketing hogging so much budget, while earning customer hate in the marketplace. After years of winning budget fights among CXOs, expect CMOs to start losing a few—or more.

Third, marketing is already looking to pull in the biggest possible data cache of all, from the Internet of Things.

Here’s T.Rob again:

IoT device vendors will sell their data to shadowy aggregators who live in the background (“…we may share with our affiliates…”)…

Second, in Harvard Business Review (@HarvardBiz), Ad Blockers and the Next Chapter of the Internet.

…look for new ways of setting terms of engagement that we each assert in our dealings online. In the past we had to accept the one-sided terms provided by websites and services. With the power to block content selectively, we can signal not only what we don’t want, but what we want and expect from the supply side of the marketplace.

Customer Commons and others in the VRM (vendor relationship management) development community are also working on terms that only start with tracking preferences. These can expand to include conditions for voluntary data sharing, expressing buying interests, and providing standard means for connecting with loyalty programs, call centers and other CRM (customer relationship management) systems on the vendors’ side. Expect to see plenty of news about these and other expressions of individual agency online over the coming months.

Naturally, these will have important effects. Three stand out:

  1. The adtech bubble will burst. In October, executives with two of the largest publishers told me they are contemplating moves to back away from adtech. One of the biggest adtech spenders also told me they just dropped many millions of dollars in annual adtech spending. When these moves, and others like them, become public knowledge, expect to see surveillance-based marketing take a dive.
  2. Terms by which individuals deal with companies will solidify. Once that happens, we can expect The Intention Economy to unfold. This is an economy driven more by actual customer intentions than by expensive marketing guesswork.
  3. The new frontier of marketing will be service, not sales. Or, in the parlance of CRM, retention rather than acquisition. Additionally, as business becomes more subscription-based, service becomes dramatically linked to continuing revenue. This is a huge greenfield that will grow as more, and better, intelligence starts to flow back and forth between customers and companies.

After that, we’ll remember the adblock war as just another milestone in the short history of the internet. Post-war reconstruction, in this case, will begin with productive means of engagement, especially around maximizing agency on the demand side of the marketplace, and adjustments in supply to meet new and better-equipped forms of demand.

And if you’re worried about publishers and advertisers surviving, remember that publishers got along fine before there was adtech, and for most companies advertising is just one form of overhead. They can spend that money lots of other ways — including new ways they couldn’t see when they thought the supply side of the marketplace was running the whole show.

Helping publishers and advertisers move past the ad blockade

reader-publisher-advertiser

Those are the three market conversations happening in the digital publishing world. Let’s look into what they’re saying, and then what more they can say that’s not being said yet.

A: Publisher-Reader

Publishing has mostly been a push medium from the start. One has always been able to write back to The Editor, and in the digital world one can tweet and post in other places, including one’s own blog. But the flow and power asymmetry is still push-dominated, and the conversation remains mostly a one-way thing, centered on editorial content. (There is also far more blocking of ads than talk about them.)

An important distinction to make here is between subscription-based pubs and free ones. The business model of subscription-supported pubs is (or at least includes) B2C: business-to-customer. The business model of free pubs is B2B: business-to-business. In the free pub case, the consumer (who is not a customer, because she isn’t paying anything) is the product sold to the pub’s customer, the advertiser.

Publishers with paying subscribers have a greater stake — and therefore interest — in opening up conversation with customers. I believe they are also less interested in fighting with customers blocking ads than are the free pubs. (It would be interesting to see research on that.)

B. Publisher-Advertiser

In the offline world, this was an uncomplicated thing. Advertisers or their agencies placed ads in publications, and paid directly for it. In the online world, ads come to publishers through a tangle of intermediaries:

displaylumascape:

Thus publishers may have no idea at any given time what ads get placed in front of what readers, or for what reason. In service to this same complex system, they also serve up far more than the pages of editorial content that attracts readers to the site. Sight unseen, they plant tracking cookies and beacons in readers’ browsers, to follow those readers around and report their doings back to third parties that help advertisers aim ads back at those readers, either on the publisher’s site or elsewhere.

We could explore the four-dimensional shell game that comprises this system, but for our purposes here let’s just say it’s a B2B conversation. That it’s a big one now doesn’t mean it has to be the only one. Many others are possible.

C. Reader-Advertiser

In traditional offline advertising, there was little if any conversation between readers and advertisers, because the main purpose of advertising was to increase awareness. (Or, as Don Marti puts it, to send an economic signal.) If there was a call to action, it usually wasn’t to do something that involved the publisher.

A lot of online advertising is still that way. But much of it is direct response advertising. This kind of advertising (as I explain in Separating Advertising’s Wheat and Chaff) is descended not from Madison Avenue, but from direct mail (aka junk mail). And (as I explain in Debugging adtech’s assumptions) it’s hard to tell the difference.

Today readers are speaking to advertisers a number of ways:

  1. Responding to ads with a click or some other gesture. (This tens to happen at percentages to the right of the decimal point.)
  2. Talking back, one way or another, over social media or their own blogs.
  3. Blocking ads, and the tracking that aims them.

Lately the rate of ad and tracking blocking by readers has gone so high that publishers and advertisers have been freaking out. This is characterized as a “war” between ad-blocking readers and publishers. At the individual level it’s just prophylaxis. At the group level it’s a boycott. Both ways it sends a message to both publishers and advertisers that much of advertising and the methods used for aiming it are not welcome.

This does not mean, however, that making those ads or their methods more welcome is the job only of advertisers and publishers. Nor does it mean that the interactions between all three parties need to be confined to the ones we have now. We’re on the Internet here.

The Internet as we know it today is only twenty years old: dating from the end of the NSFnet (on 30 April 1995) and the opening of the whole Internet to commercial activity. There are sand dunes older than Facebook, Twitter — even Google — and more durable as well. There is no reason to confine the scope of our invention to incremental adaptations of what we have. So let’s get creative here, and start by looking at, then past, the immediate crisis.

People started blocking ads for two reasons: 1) too many got icky (see the Acceptable Ads Manifesto for a list of unwanted types); 2) unwelcome tracking. Both arise from the publisher-advertiser conversation, which to the reader (aka consumer) looks like this:

rotated

Thus the non-conversation between readers blocking ads and both publishers and advertisers (A and C) looks like this:

stophandsignal

So far.

Readers also have an interest in the persistence of the publishers they read. And they have an interest in at least some advertisers’ goods and services, or the marketplace wouldn’t exist.

Thus A and C are conversational frontiers — while B is a mess in desperate need of cleaning up.

VRM is about A and C, and it can help with B. It also goes beyond conversation to include the two other activities that comprise markets: transaction and relationship. You might visualize it as this:

Handshake_icon_GREEN-BLUE.svg

From Turning the customer journey into a virtuous cycle:

One of the reasons we started ProjectVRM is that actual customers are hard to find in the CRM business. We are “leads” for Sales, “cases” in Support, “leads” again in Marketing. At the Orders stage we are destinations to which products and invoices are delivered. That’s it.

Oracle CRM, however, has a nice twist on this (and thanks to @nitinbadjatia of Oracle for sharing it*):

Oracle Twist

Here we see the “customer journey” as a path that loops between buying and owning. The blue part — OWN, on the right — is literally the customer’s own-space. As the text on the OWN loop shows, the company’s job in that space is to support and serve. As we see here…

… the place where that happens is typically the call center.

Now let’s pause to consider the curb weight of “solutions” in the world of interactivity between company and customer today. In the BUY loop of the customer journey, we have:

  1. All of advertising, which Magna Global expects to pass $.5 trillion this year
  2. All of CRM, which Gartner pegs at $18b)
  3. All the rest of marketing, which has too many segments for me to bother looking up

In the OWN loop we have a $0trillion greenfield. This is where VRM started, with personal data lockers, stores, vaults, services and (just in the last few months) clouds.

Now look around your home. What you see is mostly stuff you own. Meaning you’ve bought it already. How about basing your relationships with companies on those things, rather than over on the BUY side of the loop, where you are forced to stand under a Niagara of advertising and sales-pitching, by companies and agencies trying to “target” and “acquire” you. From marketing’s traditional point of view (the headwaters of that Niagara), the OWN loop is where they can “manage” you, “control” you, “own” you and “lock” you in. To see one way this works, check your wallets, purses, glove compartments and kitchen junk drawers for “loyalty” cards that have little if anything to do with genuine loyalty.

But what if the OWN loop actually belonged to the customer, and not to the CRM system? What if you had VRM going there, working together with CRM, at any number of touch points, including the call center?

So here are two questions for the VRM community:

  1. What are we already doing in those areas that can help move forward in A and B?
  2. What can we do that isn’t being done now?

Among things we’re already doing are:

  • Maintaining personal clouds (aka vaults, lockers, personal information management systems, et.al.) from which data we control can be shared on a permitted basis with publishers and companies that want to sell us stuff, or with which we already enjoy relationships.
  • Employing intelligent personal assistants of our own.
  • Intentcasting, in which we advertise our intentions to buy (or seek services of some kind).
  • Terms individuals can assert, to start basing interactions and relationships on equal power, rather than the defaulted one-way take-it-or-leave-it non-agreements we have today.

The main challenge for publishers and advertisers is to look outside the box in which their B2B conversation happens — and the threats to that box they see in ad blocking — and to start looking at new ways of interacting with readers. And look for leadership coming from tool and service providers representing those readers. (For example, Mozilla.)

The main challenge for VRM developers is to provide more of those tools and services.

Bonus links for starters (again, I’ll add more):

VRM Day: Let’s talk UMA and terms

VRM Day and IIW are coming up in October: VRM Day on the 26th, and IIW on the 27th-29th. As always, both are at the Computer History Museum in the heart of Silicon Valley. Also, as always, we would like to focus  VRM day on issues that will be discussed and pushed forward (by word and code) on the following days at IIW.

I see two.

The first isUMA-logo UMA, for User Managed Access. UMA is the brainchild of Eve Maler, one of the most creative minds in the Digital Identity field. (And possibly its best singer as well.) The site explains, “User-Managed Access (UMA) is an award-winning OAuth-based protocol designed to give a web user a unified control point for authorizing who and what can get access to their online personal data, content, and services, no matter where all those things live on the web. Read the spec, join the group, check out the implementations, follow us on Twitter, like us onFacebook, get involved!”

Which a number of us in the #VRM community already are — enough, in fact, to lead discussion on VRM Day.

In Regaining Control of Our Data with User-Managed Access, Phil Windley calls VRM “a perfect example of the kind of place where UMA could have a big impact. VRM is giving customers tools for managing their interactions with vendors. That sounds, in large part, like a permissioning task. And UMA could be a key piece of technology for unifying various VRM efforts.”

For example, “Most of us hate seeing ads getting in the way of what we’re trying to do online. The problem is that even with the best “targeting” technology, most of the ads you see are wasted. You don’t want to see them. UMA could be used to send much stronger signals to vendors by granting permission for them to access information would let them help me and, in the process, make more money.”

We call those signals “intentcasting.”

Yet, even though our wiki lists almost two dozen intentcasting developers, all of them roll their own code. As a result, all of them have limited success. This argues for looking at UMA as one way they can  substantiate the category together.

A large amount of activity is going into UMA and health care, which is perhaps the biggest VRM “vertical.” (Since it involves all of us, and what matters most to our being active on the planet.)

The second topic is terms. These can take two forms: ones individuals can assert (which on the wiki we call EmanciTerm); and truly user- and customer-friendly ones sites and services can assert. (Along with truly agreeable privacy policies on both sides.)

At last Fall’s VRM Day, we came up with one possible approach, which looked like this on the whiteboard:

UserTerms1This was posted on Customer Commons, which is designed to serve the same purpose for individual terms as Creative Commons does for individual artists’ copyright terms. We can do the same this time.

Lately Meeco has come out with terms individuals can set. And there are others in the works as well. (One in particular will be of special interest, but it’s not public yet. I expect it will be, by VRM Day.)

So be sure to register soon. Space is limited.

Bonus links/tweets: here and here.

 

 

Loyalty means nothing if customers don’t have their own ways of expressing it

nomorecards

@jobsworth and I were just pointed by @aainslie to a @ronmiller piece in @TechCrunch titled In The Age of Disruption, Customer Love Is More Important Than Ever.

The headline says it all, and it’s true. But, as with all pieces like this, it’s about what companies can (or should) do, rather than what customers can do.

Think about it. What if customers had their own systematic methods of expressing loyalty? Not silo-provided gimmicks like Facebook’s “like” buttons, but standard tools or systems that every customer could use, as easily as they use their own wallets or phones.

Think about how much better it would be for the whole marketplace if we built loyalty tools and systems where loyalty actually resides: on the customer’s side. What customers express through these tools and systems would be far more genuine and meaningful than any of today’s silo’d and coercive “loyalty programs,” which inconvenience everybody and yield rewards worth less than the time wasted by everybody dealing with them.

If loyalty systems are left entirely up to the sellers of the world, we’ll have as many different systems as we have sellers. Which, of course, is what we already have, and it’s a royal mess.

As it happens, loyalty is one VRM development area where there is nothing going on, so far — or at least nothing that fits the description I just made.

So maybe it’s about time to get started. Looks like a greenfield to me.

Speaking of which, I’ll betcha there is stuff that already exists within CRM systems that could be ported over to the customer side, and then match up with seller-side CRM stuff. Be interesting to hear from CRM folks about that. Here’s the key thing, though: customer VRM loyalty tools need to work with all CRM systems. (Just like, say, browsers, email and other standard customer-side tools also do.)

The coming collapse of surveillance marketing

A few minutes ago, on a mailing list, somebody asked me if Google hadn’t shown people don’t mind having personal data harvested as long as they get value in exchange for it. Here’s what I answered:

It’s not about Google — or Google alone. It’s about the wanton and widespread harvesting of personal data without permission, by pretty much the entire digital marketing field, or what it has become while in maximum thrall of Big Data.

That this is normative in the extreme does not make it right, or even sustainable. The market — customers like you and me — doesn’t like it. Technologists, sooner or later, will provide customers with means of control they still lack today.

The plain fact is that most people don’t like surveillance-based marketing. Study after study (by TRUSTe, Pew, Customer Commons and others) have shown that 90+% of people have problems with the way their data and their privacy are abused online.

The Tradeoff Fallacy: How Marketers Are Misrepresenting American Consumers and Opening Them Up to Exploitation” by Annenberg (at the U. of Pa) says,

a majority of Americans are resigned to giving up their data—and that is why many appear to be engaging in tradeoffs. Resignation occurs when a person believes an undesirable outcome is inevitable and feels powerless to stop it. Rather than feeling able to make choices, Americans believe it is futile to manage what companies can learn about them. The study reveals that more than half do not want to lose control over their information but also believe this loss of control has already happened.

More from Penn News:

Survey respondents were asked whether they would accept “tradeoffs,” such as discounts, in exchange for allowing their supermarkets to collect information about their grocery purchases.  Among the key findings:

    • 91 percent disagree (77 percent of them strongly) that “if companies give me a discount, it is a fair exchange for them to collect information about me without my knowing.”
    • 71 percent disagree (53 percent of them strongly) that “it’s fair for an online or physical store to monitor what I’m doing online when I’m there, in exchange for letting me use the store’s wireless Internet, or Wi-Fi, without charge.”
    • 55 percent disagree (38 percent of them strongly) that “it’s okay if a store where I shop uses information it has about me to create a picture of me that improves the services they provide for me.”
Only about 4 percent agree or agree strongly with all three propositions.

But 58 percent agreed with both of the following two statements that together indicate resignation:  “I want to have control over what marketers know about me online” and “I’ve come to accept that I have little control over what marketers can learn about me online.”

The Net we know today was born only twenty years ago, when it opened to commercial activity. We are still naked there, lacking in clothing and shelter (to name two familiar privacy technologies in the physical world). Eventually we’ll have clothing and shelter in many forms, good means for preventing and permitting the ways others deal with us, and full agency in our dealings with business and government.

In the meantime we’ll have a status quo to which we remain resigned.

I suspect that even Google knows this will change.

Bonus Link.

Think about an irony here. Most brick-and-mortar merchants would be appalled at the thought of placing tracking beacons on visiting customers, to spy on them after they leave the store, just so they can be “delivered” a better “advertising experience.” And obviously, customers would hate it too. Yet many of the same merchants hardly think twice about doing the same online.

This will change because there is clear market sentiment against it. We see this through pressure toward regulation (especially in Europe), and through ad and tracking blocking rates that steadily increase.

But both regulation and blockers are stone tools. Eventually we’ll get real clothing and shelter.

That’s what we’ve been working on here with ProjectVRM. It’s taking longer than we expected at first, but it will happen, and not just because there is already a lot of VRM development going on.

It will happen because we have the Net, and the Net is not just Google and Facebook and other modern industrial giants. The Net is where all of those companies live, in the company of customers, to whom, — sooner or later, they become accountable.

Right now marketing is not taking the massive negative externalities of surveillance into account, mostly because marketing is a B2B rather than a B2C business, and there persists a blindered mania around Big Data. But they will take those externalities into account eventually, because the Cs of the world will gain the power to protect themselves against unwanted surveillance, and will provide far more useful economic signaling to the businesses of the world than marketing can ever guess at.

Once that happens, the surveillance marketing business, and what feeds it, will collapse.

“A house divided against itself cannot stand,” Lincoln said. That was in 1858, and in respect to slavery. In 2015 the language of marketing — in which customers are “targets” to be “acquired,” “controlled,” “managed” and “locked in” — is not much different than the language of slave owners in Lincoln’s time.

This will change for the simple reason that we are not slaves. We are the ones with the money, the choice about patronage, and the network. Companies that give us full respect will be the winners in the long run. Companies that continue to treat us as less than human will suffer the consequences.

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